Cadence Bank (NYSE:CADE) Stock Rating Lowered by Wall Street Zen

Key Points

• Cadence Bank has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, impacting its market perception amid varying analyst opinions.
• Despite the downgrade, several analysts have raised their price targets for Cadence Bank, with Royal Bank of Canada increasing it from $34.00 to $37.00 and Barclays setting a target at $41.00.
• Cadence Bank's Board of Directors has initiated a stock repurchase plan for 10 million outstanding shares, indicating confidence in the stock's valuation.

Wall Street Zen downgraded shares of Cadence Bank (NYSE:CADE - Free Report) from a hold rating to a sell rating in a research report released on Saturday morning.

Several other research analysts have also issued reports on the company. Stephens restated an "overweight" rating and set a $40.00 target price on shares of Cadence Bank in a research report on Tuesday, April 22nd. Piper Sandler raised Cadence Bank from a "neutral" rating to an "overweight" rating and increased their price target for the stock from $36.00 to $42.00 in a research report on Tuesday, July 8th. Royal Bank Of Canada raised their target price on Cadence Bank from $34.00 to $37.00 and gave the company a "sector perform" rating in a research report on Friday. Barclays reaffirmed an "overweight" rating and issued a $41.00 price target (up from $38.00) on shares of Cadence Bank in a research note on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods raised their target price on shares of Cadence Bank from $38.00 to $40.00 and gave the stock an "outperform" rating in a research note on Friday, May 9th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and seven have assigned a buy rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $40.40.

Cadence Bank Stock Down 1.6%

CADE stock traded down $0.58 on Friday, reaching $35.69. 2,665,966 shares of the company traded hands, compared to its average volume of 2,032,757. The firm has a fifty day simple moving average of $32.52 and a 200-day simple moving average of $31.87. The company has a debt-to-equity ratio of 0.25, a current ratio of 0.87 and a quick ratio of 0.87. Cadence Bank has a one year low of $25.22 and a one year high of $40.20. The company has a market cap of $6.50 billion, a P/E ratio of 12.70 and a beta of 0.84.

Cadence Bank (NYSE:CADE - Get Free Report) last issued its earnings results on Wednesday, July 23rd. The company reported $0.73 EPS for the quarter, beating the consensus estimate of $0.69 by $0.04. Cadence Bank had a return on equity of 9.84% and a net margin of 18.79%. The business had revenue of $476.32 million for the quarter, compared to the consensus estimate of $467.60 million. During the same period last year, the business posted $0.73 EPS. Research analysts anticipate that Cadence Bank will post 2.94 earnings per share for the current year.

Cadence Bank Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Monday, September 15th will be given a dividend of $0.275 per share. This represents a $1.10 dividend on an annualized basis and a dividend yield of 3.08%. The ex-dividend date is Monday, September 15th. Cadence Bank's dividend payout ratio is currently 39.15%.

Cadence Bank declared that its Board of Directors has approved a share repurchase program on Friday, April 25th that permits the company to buyback 10,000,000 shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Hedge Funds Weigh In On Cadence Bank

A number of institutional investors and hedge funds have recently modified their holdings of the company. Sheets Smith Wealth Management raised its holdings in Cadence Bank by 2.6% during the second quarter. Sheets Smith Wealth Management now owns 18,040 shares of the company's stock worth $577,000 after purchasing an additional 464 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in Cadence Bank by 0.9% during the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 51,634 shares of the company's stock worth $1,568,000 after acquiring an additional 480 shares during the last quarter. Johnson Investment Counsel Inc. lifted its stake in shares of Cadence Bank by 8.6% during the 1st quarter. Johnson Investment Counsel Inc. now owns 7,317 shares of the company's stock worth $222,000 after purchasing an additional 578 shares during the period. Xponance Inc. boosted its holdings in shares of Cadence Bank by 2.3% during the first quarter. Xponance Inc. now owns 26,415 shares of the company's stock worth $802,000 after purchasing an additional 587 shares during the last quarter. Finally, Sit Investment Associates Inc. boosted its holdings in shares of Cadence Bank by 2.4% during the fourth quarter. Sit Investment Associates Inc. now owns 25,750 shares of the company's stock worth $887,000 after purchasing an additional 600 shares during the last quarter. Institutional investors and hedge funds own 84.61% of the company's stock.

Cadence Bank Company Profile

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services.